Federal Bankruptcy Judge Maria Oxholm has raised concerns that tenants of the historic Leland House in Detroit were not properly notified or given a chance to participate in the bankruptcy case that affects their homes and belongings.
The court's decision allows moving contractors, but not the tenants themselves, to enter the 22-story building at 400 Bagley Street. However, residents have been locked out since December, when they were forced out due to an electrical equipment failure that knocked out power, heat, and elevators. Tenants had been told that displacement would be temporary, and access to their apartments would be allowed for retrieving personal belongings.
The judge expressed concerns about the lack of notice to tenants and their exclusion from the bankruptcy proceedings. An attorney representing residents argued that there were fundamental notice and due process failures, citing an earlier order that authorized bankruptcy funds for repairs and utility stabilization, but then redirected those funds towards removing residents' belongings without proper notification.
The city of Detroit has taken a hard line against the tenants, characterizing their request as frivolous. However, the judge declined to rule against them and recognized their role in the case, directing an attorney representing residents to meet with the owner, the city, DTE Energy, and other parties to attempt to reach a resolution.
The U.S. Trustee has also raised concerns about financial transparency in the case and how debtor-in-possession funds have been handled and redirected. The hearing came days after the judge halted a proposed fast-track auction of the Leland House and an adjacent parking lot due to unresolved disputes over tenant rights.
As the case returns to court on February 24, residents remain hopeful that they will be able to access their belongings and receive proper compensation for their displacement. The building's owner has stated that they are working closely with the city, fire department, court, and residents to establish a safe process for retrieving personal belongings, but the outcome remains uncertain.
The court's decision allows moving contractors, but not the tenants themselves, to enter the 22-story building at 400 Bagley Street. However, residents have been locked out since December, when they were forced out due to an electrical equipment failure that knocked out power, heat, and elevators. Tenants had been told that displacement would be temporary, and access to their apartments would be allowed for retrieving personal belongings.
The judge expressed concerns about the lack of notice to tenants and their exclusion from the bankruptcy proceedings. An attorney representing residents argued that there were fundamental notice and due process failures, citing an earlier order that authorized bankruptcy funds for repairs and utility stabilization, but then redirected those funds towards removing residents' belongings without proper notification.
The city of Detroit has taken a hard line against the tenants, characterizing their request as frivolous. However, the judge declined to rule against them and recognized their role in the case, directing an attorney representing residents to meet with the owner, the city, DTE Energy, and other parties to attempt to reach a resolution.
The U.S. Trustee has also raised concerns about financial transparency in the case and how debtor-in-possession funds have been handled and redirected. The hearing came days after the judge halted a proposed fast-track auction of the Leland House and an adjacent parking lot due to unresolved disputes over tenant rights.
As the case returns to court on February 24, residents remain hopeful that they will be able to access their belongings and receive proper compensation for their displacement. The building's owner has stated that they are working closely with the city, fire department, court, and residents to establish a safe process for retrieving personal belongings, but the outcome remains uncertain.
. It's like, they were told it was temporary and they could get back in, but now it's not just temporary, it's permanent... or at least, that's how it feels. I mean, who needs to be notified when the power goes out? 
It's not like it's a normal part of life where you can just pick up and move whenever there's a small issue. The city is being super harsh, in my opinion 
. And what about all those belongings they had to leave behind? 
It's just not right.
. But it's still super frustrating that this has been going on for months now. I hope they can get some answers and compensation soon 
. The U.S. Trustee bringing up financial transparency issues makes me think there might be more shady stuff going on behind the scenes 
... fingers crossed the judge is keeping an eye on it 
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. And what's up with all these parties not being on the same page? The city, DTE Energy, and owner all seem to be at odds about who gets what 
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I think it's super shady how tenants were told their displacement would be temporary and then just locked out of the building without any real notice or access to their stuff. The judge is right to question whether there was even proper notification, considering the court order that said they could retrieve their belongings eventually - only for those plans to get scrapped.
can't they see how messed up this whole thing is?! I'm keeping my fingers crossed that the residents get to access their stuff and get some justice soon...
... it's like, shouldn't we be supporting our community members instead of prioritizing profits? I mean, what's next? Are they gonna auction off all our public spaces to the highest bidder? It's time to take a stand and demand some transparency from our leaders 
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... tenants been locked outta their own homes since dec & now dont no if dey gonna get 2 access ther stuff 
gotta wonder wut kinda system lets 'em prioritize profits over peoples lives 
Meanwhile, there's this judge who's supposed to be all about fairness, but she's letting the bigwigs off the hook 
I mean, what even is the point of having a court if you're not gonna hold anyone accountable? 
And don't even get me started on these moving contractors - they're just scoping out the place for parts to resell or something 
The tenants were told one thing, but then BAM! they're outta there. No notice, no nothing. Just lock 'em out and let the contractors move in. 
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The city and owner are just being super harsh on them... 